– Will the increased speed directly result in a revenue increase. Just because the development went agile does it mean that the customer contracts went agile? No…
- Go to market – Launch
- Generating the backlog for success – elicitation and idealization
- Building Product Management team
Go To MarketWe worked with one company that suddenly realized that R&D was no longer the bottleneck. The customers and the sales complained about the speed of getting new updates and fixing bugs. Due to Agile, the development speed tripled. Now, they just had to be satisfied, right? Well, not so fast…The sales and marketing weren’t able to handle all the information on the new features and fixes. The customers got confused when continuously finding new functions. The manuals were not updated (not that anybody ever looked up then, but still…). The support organization suddenly got more and more requests.To solve the situation the sales and marketing were forced to get more training and information on the continuous development. Clients got happier, sales got more skilled, but the CEO was angry. The sales towards new customers decreased. Sales were too busy handling the existing customers. Marketing spent time informing customers, the help desk cost increased.But worst of all was that many cool new features were introduced without new price plans were introduced.Nobody had in their wildest dreams thought that an increased speed in development would result in lower profits.To solve the above situation and similar situation you need to change some key areas:
- Principle 1: Just because it is developed doesn’t mean it should be launched.Every launch every change has a cost. Often a hidden cost.
- Principle 2: Separate updates with new valuable functions.Functions that go beyond the existing contracts and obligations need pricing. They need to be sold separately. While other functions and bug fixes need no commercial process to be implemented.
- Principle 3: Define target applications or target segmentsAllow some sprints only to focus on new customers and not the existing clients. Sometimes we need to listen to the new revenue stream not just the old.
Generating the backlog for successAs the speed increases, we must also generate more input? We must become faster in generating the RIGHT input. There are three main ways of doing this:1. Defining and communicating your Strategic Assets, especially target applications and segments. This means that we make sure that everyone is knowledgeable about the direction and especially where to look for input.2. Developing your process Develop your process in how to prioritize and allow requirements to be developed. The process of how you are grooming your backlog is of course important. It should stop all requirements that do not generate a great financial impact or that are instrumental in achieving the strategy.3. Define Opportunity areas
Building the product management teamThe Product management workload increases as we go agile. The risk that the Product management gets blamed for any mistakes can decrease speed.
- You need to enlarge the Product Management organization to fit into an agile environment.
- You need to build skills in an agile product management organization
- You need to build teams.
The workload and stress for a single product manager will be too large. Many agile organizations have seen their critical product managers leave the organizations due to the poor way of working.Let Product Management enable the Agile speed by adopting an agile way of working.We have interviewed researchers, product managers, management, developers about Agile and Product Management. Watch the video for an interview with Carina Alves on Agile Speed in Ecosystems or download the Whitepaper for the full article.
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